Verizon flexes its muscle as the number one mobile provider, as their CFO Fran Shammo announced the launch of their Verizon Edge at the Q2 earnings call this morning.
The Verizon Edge upgrade plan which will go live on August 25, will have no contracts, but month to month payments and early upgrades.
So how does it work? Consumers can buy cellphones on month-to-month service plans. What this essentially means is that they are able to get new phones without committing to a contract. But, the payment of the device will be spread over 24 months, and the first month’s payment is due at time of acquisition.
Now VZ Edge will allow you to upgrade early and often as long as you have been in the plan for at least 6 months and you must have at least paid 50% of the full retail price of the device. You can then select a new cellphone and repeat the process. What makes it easier to acquire a new phone is the fact that the price of the phone is spread over the entire 24 months, thus eliminating the need to make huge upfront payments.
Verizon also has no finance charges or upgrade fee to allow access to VZ Edge. Contrast this to T-Mobile who has a $10 montly charge to sign up for the Jump! branded upgrade option and AT & T which will also require a subsidy for their Next Program.
Both VZ Edge and AT & T have no upfront fees, unlike T-Mobile’s Jump! who has an upfront fee.
With both VZ Edge and T-Mobile’s Jump!, you will be allowed to upgrade as soon as six months after enrollment. But with AT & T you would need to have been in their Next programme for at least 12 months in order to qualify for an early upgrade.
So it appears that the VZ Edge really has all the sweet things like “no upfront fees”, “an early upgrade of 6 months” (if you have paid at least 50% of the value of the phone) and the unique “no monthly program fee” to access their VZ Edge package.
The only down-side is that Verizon has confirmed that VZ Edge is not available to customers on their unlimited data plans.